Renewable Energy Programs in Massachusetts
What incentives are offered in MA? Massachusetts is currently offering a second roll out of the state Solar Renewable Energy Credit (SREC) program. This means that homeowners generating solar power will earn credits holding a monetary value for every kilowatt hour (kWh) produced.
- SREC’s are available to homeowners serviced by a major utility. Eversource, National Grid, Unitil or WEMCO customers are eligible. Municipal power providers are not required to purchase SRECs.
How does it work? SREC’s are issued as a tradeable commodity directly to the owner of a solar photovoltaic system. One SREC is issued for every 1000 kWh produced by a solar array. The current average SREC value is $200 which means every kWh generated is valued at about $.20. Utilities are required by the state to purchase SREC’s from solar producers every year.
- SREC’s are guaranteed for a term length of 10 years.
- An SREC broker will be provided to manage the sale for the customer.
Can it really save me money? Yes! The energy produced by the system will show up as a credit on your electric bill. The SREC value will show up as a check in the mail.
Current SREC Rates: 20 Cents/kWh. Ave Electric Rate: 16 Cents/kWh
600 kWh per month Electrical Usage* = $216 Monthly Value
SREC @$.20= $120 Earned
Electric Bill Credit @$.16/kWh =$96 Saved
That’s an annual value of $2,592 in combined savings and payments!
*Based on average Massachusetts homeowner electric usage and a system size.
Additional Incentives: Massachusetts homeowners are also eligible for a state tax credit valued at 15% of the cost of a solar installation with a maximum benefit of $1,000. This can be combined with the federal solar tax credit valued at 30% of the installation cost.
- For example, an install that costs $10,000 will cost only $6,000 after both the federal and state credits are applied.
Massachusetts Solar Loan Program: The solar loan program offers a low interest, fixed rate loan for residential solar installs.
What’s New for MA Solar? Massachusetts is in the process of revamping its solar incentive program. The new Solar Massachusetts Renewable Target program (SMART) is being finalized and will go into effect in 2018. The SunWatt team is following the process closely and will be ready to help Massachusetts customers negotiate the incentives when the legislation goes into effect.
Check back on our webpage and follow SunWatt Solar on Facebook to stay up to date with the latest news on solar in Massachusetts.
Can I Install Solar in MA now? Yes! In fact, now is the best time to go solar. While the SMART program incentives look to be generous, the current program pays out the most for homeowners. Massachusetts is still issuing Solar Renewable Energy Credits (SREC) until the new program is finalized. SunWatt can help you take advantage of the SREC program before it expires.
If you interconnect under the current SREC program your incentive rate will be locked in for 10 years.
A SunWatt solar expert can help you get interconnected at the best possible incentive rate available to you. Act now and save more with solar in Massachusetts.